Company Number: 12822716

Analysis Date: 2025-07-19 12:52 UTC

1. Credit Opinion: DECLINE
   Alim Live Ltd’s financial position shows persistent and increasing net liabilities over the last four years, with net assets deteriorating from a modest positive in 2020 to a significant negative £47,744 by August 2024. Current liabilities substantially exceed current assets, indicating poor short-term liquidity and working capital deficits. The introduction of £19,000 in longer-term creditors in 2024 further strains the balance sheet. The company’s track record does not demonstrate an ability to generate positive equity or build liquidity buffers, raising concerns about debt servicing capacity. Given these factors, the credit risk is high, and approval of new credit facilities would be imprudent without substantial financial restructuring or guarantees.

2. Financial Strength:
   The balance sheet reveals a weak financial foundation. Net current liabilities increased from £22,343 in 2021 to £28,744 in 2024, reflecting ongoing working capital deficits. The net liabilities position worsened by over £12,000 in the latest year, driven by declining current assets and only modest reductions in current liabilities. Shareholders’ funds remain negative and deteriorating, indicating accumulated losses or ongoing cash outflows exceeding funding. The absence of significant fixed assets or equity cushions means the company lacks financial resilience and has limited buffer to absorb shocks or downturns.

3. Cash Flow Assessment:
   The company’s liquidity is constrained, with current assets of £22,289 against current liabilities of £51,033 at the latest year-end. This negative working capital position implies difficulties in meeting short-term obligations as they fall due. The reduction in current assets from £49,469 in 2023 to £22,289 in 2024 is concerning and may indicate cash burn or poor receivables/stock management. No cash flow statements are provided, but given the balance sheet trends, cash generation appears inadequate, increasing the risk of payment default without external support or capital injection.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital ratios closely.
• Watch for any capital injections or restructuring plans to improve net asset position.
• Track changes in creditor days and payment behaviour.
• Assess any changes in director or PSC status that might impact governance or financial stewardship.
• Review future annual accounts for evidence of revenue growth or cost control to reverse current losses.